When the U.S. government runs a deficit, the savings in the market for loanable funds shifts:
A. right, decreasing interest rates and increasing domestic investment and NCO.
B. left, increasing interest rates and decreasing domestic investment and NCO.
C. right, increasing interest rates, and increasing domestic investment and NCO.
D. left, decreasing interest rates and increasing domestic investment and NCO.
Answer: B
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When there is a liquidity trap, the money demand curve is ________.
A. downward sloping B. flat C. upward sloping D. vertical
Which of the following best describes the inflation rate in the United Kingdom in 1975?
a. 8% b. 15% c. Almost 25% d. More than 25%
Total consumption consists entirely of two components: autonomous consumption and income-dependent consumption.
Answer the following statement true (T) or false (F)
Normal rate of return is
A. economic profit. B. an explicit cost. C. the amount that must be paid to obtain investment in a business. D. accounting profit.